Company Formation in Dubai, UAE
Dubai is a global attraction for business. With a high rate of tourism, tax benefits, and easy visa processing, it is one of the best destinations on earth to start your business. You can enjoy an environment that sparks growth and consistency for new startups. The emirate’s GDP was AED 300 billion last year, and it is expected to grow further in the upcoming years.
Here’s what makes Dubai special for business:
- Dubai is in the middle of Asia, Europe, and Africa, so it’s easy to trade with many countries.
- It has low taxes and free zones that make starting a business easy.
- The city is safe, has great roads and buildings, and strong rules that help businesses grow.
Starting a business setup in Dubai begins with selecting a suitable location. Dubai offers the mainland, free zones, and offshore. On top of that, you can enjoy the most amount of business activities and diverse sectors here.
Setting up a business in the UAE is easy, but it requires a guide. To increase efficiency and cut extra costs, consider hiring business setup consultants. This guide walks you through everything you should know to start the company formation in the UAE.
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Locations for Company Formation in the UAE
- Mainland
- Freezone
- Offshore
Mainland allows you to do business all around the UAE with no territorial restrictions. Department of Economic Development Dubai handles the regulations and business environment in the Mainland. Mainland Companies enjoy private as well as government contracts.
Perfect for you if:
- You want to trade across the UAE
- You plan to work with the government
- You need a flexible office space anywhere
Free Zones are specialized developed areas for business activities under different regulatory bodies. These zones offer easy business setup, a suitable environment, and efficient business structures. A free zone company cannot trade outside the designated area of the zone.
Perfect for you if:
- You want full business ownership
- You need tax savings
- You will trade inside the zone or export
Offshore business setup allows foreign companies and investors to register their holding companies in the UAE, but they cannot engage in trade here. An offshore setup is sought after for different reasons.
Perfect for you if:
- You do global business
- You want a holding company
- You don’t need a UAE office or market
Process and Timeline
- 1Should be 18 years old and above
- 2Should not have any criminal records
- 3The business should be legally permissible
- 4Should be an individual, corporate or mixed of both
Company Registration
For Individual Shareholder/s
1. Scanned passport copy
2. Emirates ID copy (back & front), if applicable
3. Scanned visa copy/UAE Entry Stamp/Tourist or Visit Visa Copy
4. Number of Shareholders with sharing (%) of Manager of the company
If Manager is not a Shareholder:
1. Full Name as per the passport
2. Valid Phone Number
3. UAE Home Address
4. Scanned passport copy
5. Passport size with white background
6. Scanned copy of the visa page
7. Emirates ID copy (back & front)
For Corporate Shareholder/s
1. Board resolution
2. Trade License, MOA, Incumbency, Share Certificate of the shareholding company
3. Passport copy/ies of the UBO/s
4. Passport copy/ies of the Manager/s
5. Visa of the Manager/s if UAE resident
6. UAE Home address of the Authorized Signatory
7. Passport size photo of the Authorized signatory
8. Number of Shareholders with sharing (%) of Manager of the company
Company Registration
Trade Name Approval
1 business day
Shareholder’s Security Approval
5-7 business days
Trade License Issuance
3-4 business days
Establishment Card Application
1 business day
Establishment Card Issuance
5-7 business daysResidence Visa Application
Electronic Visa Application
5-7 business daysClient Arrival (if outside the UAE) | Change Status (if within the UAE)
Depends on the client | 2-3 business daysMedical Test
1 business dayMedical Test Result Release
Normal - 2 business days | VIP - within the dayEmirates ID Typing
1 business day
Obtaining Health Insurance
Depends on the client | Mandatory if applying in Dubai & Abu Dhabi
Visa Approval
5-7 business days
Emirates ID Biometrics & Photo Capturing
Approx. 15-20 business days from the date of Emirates ID typing
Emirates ID Issuance
5 business daysSteps to Start a Business Setup in Dubai, UAE
The process starts with choosing the right type of business activities for your business. Check the list of approved activities and select the ones that suit you. They will determine what business license you require.
Choose between the jurisdictions, i.e., Mainland, Free Zone, or Offshore. Each one has its purpose and perks. See which options align with your business goals and plans the most.
Pick a company name and get it reserved from the regulatory authority. It must be unique and shouldn’t be against the norms of society.
Apply for the initial approval from the jurisdiction’s regulatory authority. Submit the information and documents they may require. This approval paves the way for the upcoming steps.
Explore different options for office space and choose the one that suits you the most. There are many options available for Dubai companies, including executive offices, shared spaces, industrial zones, etc.
Submit the required documents and pay the fee on time. Ensure that the documents are valid and correct. A mistake in this step can cause delays and fines.
Once your application is reviewed and approved, you will receive your business license. You can start your business operations with the license in hand.
Open a commercial bank account in the name of your business to streamline all your financial transactions and apply for visas if required.
Benefits of Company Formation in Dubai
100% Ownership
No Income Tax
Easy Setup
Global Access
Strong Laws
Safe Environment
Modern Offices
Skilled Workforce
Investor Support
Great Infrastructure
Popular Legal Entities for Business in Dubai
Limited Liability Company
LLC is the most famous type of legal structure in the UAE. It requires 2 – 50 shareholders offering them limited liability. It’s perfect if your business is owned by several people and requires a standard structure.
Sole Proprietorship
A sole proprietorship is the type of company structure that is owned by a single individual/company. It’s a popular option. Perfect if you are the sole owner starting your company, and you plan to keep it this way.
Free Zone Company
Dubai Free Zones offer several business structure options. A free zone company, FZE or FZC, allows a standard structure with limited liability. An FZC is owned by multiple people, while an FZE is like a sole establishment.
Types of Licenses to Start a Company in the UAE
Commercial License
This license allows the holders to engage in activities such as buying, selling, and distributing. Your company setup has to register the products they will deal with. If your business requires a diverse range of products, you can get a general trading license.
Industrial License
An industrial license allows you to set up a company in the industrial sector, allowing activities such as manufacturing, importing raw materials, redesigning, and remodeling. It’s a profitable sector in Dubai mainland and industrial zones.
Professional License
A professional license is for companies and individuals who deal in services instead of goods. If you’re an expert in a field and want to offer your services or opinions professionally, you can start your company in Dubai with this license.
Tourism License
Tourism license covers activities that belong to the tourism sector, such as tourism agencies, event planning, and hotels. Considering the number of annual visitors in the UAE, it is a very profitable sector.
Freelance Permit
This permit allows individuals to sign freelance contracts, allowing them to work in flexible hours. You become your own boss. This permit caters to the recent rise of freelancing. It is the perfect way to get started in your industry if you’re new.
E-commerce License
An ecommerce license allows individuals and companies to trade goods through electronic means. After company registration, individuals can start their business from home, while established shops can use it to reach newer audiences.
Simplify the Process of Business Setup in Dubai with IBG Consulting
Solution? You need a business consultancy with years of experience, legal knowledge, and useful networks to experience a smooth business formation process. IBG Consultancy has it all and more, including suitable visa packages for a diverse range of businesses. Contact IBG Consultancy for a smooth Company Formation in Dubai, UAE.
Frequently Asked Questions
What’s the difference between mainland and freezone company setup in Dubai?
Mainland business setup allows companies to conduct business across the UAE, including working with government entities. In contrast, free zone companies operate within specific zones under the regulation of free zone authorities, often offering 100% ownership and tax incentives but with limited local market access.
Why should foreign companies consider company registration in Dubai?
Dubai offers an investor-friendly business environment, minimal taxes, and global connectivity. These features make it highly attractive for foreign companies looking to expand or enter new markets.
How can formation experts help with starting a business in Dubai?
Company formation experts understand local laws, documentation, and approval procedures. They simplify the business registration process, saving time and preventing costly mistakes during your business journey.
Is the Jebel Ali Free Zone a good option for international business?
Yes, the Jebel Ali Free Zone is one of the most established free zones in the UAE, ideal for international business. It offers access to world-class infrastructure and global shipping routes.
What is the process to open a bank account in the UAE for a new company?
After completing company incorporation, you’ll need to submit your business license, documents, and sometimes a business plan to open a bank account in the UAE. Each bank may have different requirements based on the nature of your business.
What factors influence the business setup cost in Dubai?
Business setup cost varies depending on the type of business activity, chosen jurisdiction (mainland or free zone), office requirements, visa needs, and other approvals. It’s important to get an estimate based on your specific business needs.
Can I set up a new company in a Dubai Free Zone from abroad?
Yes, many free zones in the UAE allow remote company set-up. With the help of formation experts, you can set up a new company without being physically present in the UAE.
What are the most popular types of business licenses in the UAE?
The kinds of business licenses include commercial, professional, industrial, tourism, and e-commerce licenses. Your license type depends on the nature of business you plan to carry out.
What makes Dubai and the UAE ideal for business setup?
Dubai and the UAE provide stability, modern infrastructure, tax advantages, and access to the broader UAE market and the Middle East. These qualities create an ideal environment for starting and scaling a business.
What support do business setup services in Dubai offer?
Business setup services in Dubai handle paperwork, licensing, visas, and banking. These professionals help establish your business, ensuring a smooth process of business setup from start to finish.
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